Quick update on the developing situation in Africa’s important mining center, Burkina Faso. The new transitional government of that nation announced last week that it is making some important shifts in mining policy. Perhaps most importantly, officials said they will “review” existing mining contracts in the country. Which were signed under the previous government of president Blaise Compaore–who was deposed in a coup in October, ending his 27-year rule.
Although few details were given, such moves are always unsettling. Especially when a major change of government is involved–potentially opening the door for new regulators to amend or even nullify contracts.
On the plus side, the new Burkina Faso government also said it is looking to amend its mining code. Apparently with the aim of making the sector more attractive to incoming investors.
That could be an important development, given the significant gold potential identified in the country to date.
There is also noted prospectivity here for zinc and lead–as well as silver, copper and nickel.
Watch for more news on the outcomes of contract reviews–and be prepared for some possible changes to current projects in the country.
Here’s to changes,
By Dave Forest
Further out, look for details on the new mining code. Which could open up new exploration and development opportunities here.